Mind the gap
Posted on 25 Mar 2025
By Greg Thom, journalist, Institute of Community Directors Australia
Charities Minister Andrew Leigh has called out the widening inequality gap in Australia, saying it could have profound social implications if not adequately addressed.
In a speech at the recent Catholic Social Services Australia conference in Sydney, Leigh said that Australians experienced significant upward social mobility and rising standards of living in the decades following WWII.
This was powered by strong unions, progressive taxation, expanded public services, and affordable housing policies.
Leigh said that since the 1980s, however, much of that progress toward a fairer and more equitable society had been reversed.
“Today, the top one percent of income earners receives nearly 10 percent of national income, nearly doubling their share from 40 years ago.
“Wealth inequality is even more extreme, with the richest fifth owning more than 60 times the wealth of the bottom fifth.”
Leigh said this widening gap should be viewed not just in economic terms but in the way it profoundly affects people’s everyday lives.
“Those at the bottom face greater health challenges, including a stark difference in life expectancy.
“Australians in the richest fifth of the population live an average of six years longer than those in the poorest fifth.”
Leigh said the poorest Australians have seven fewer teeth on average due to poor dental care.
When it comes to education, the wealth gap translates into substantial resource disparities between affluent and poorer communities.
“Inequality does not simply represent a difference in wealth; it shapes our society,” said Leigh.
“Excessive inequality erodes social cohesion, reducing empathy and undermining community bonds.”
“Inequality is not just an abstract economic issue; it affects our communities, our health, our opportunities, and our sense of national cohesion.”
Leigh said that when wealth is concentrated among a few, society becomes fragmented.
“Our sense of collective responsibility diminishes, and the fabric that binds us as Australians weakens.”
Leigh said that for too many Australians, the promise of a fair go – the belief that effort and hard work determine success, not birth or background – has felt increasingly out of reach.
“Inequality is not just an abstract economic issue; it affects our communities, our health, our opportunities, and our sense of national cohesion.”
While he acknowledged that no government is perfect, Leigh outlined measures he said the Albanese government had undertaken since being elected in 2022 to ensure prosperity was shared more fairly across society.
Leigh said addressing inequality was a profound challenge, but not insurmountable.
“Australian history reminds us that inequality is never inevitable. It expands or shrinks based on the decisions we make collectively as a society.
“Together, we can create a society where dignity, justice, and opportunity are the lived reality for every Australian.”
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